Finance Minister Nirmala Sitharaman unveiled a strategy to advance the electric vehicle (EV) industry today during her interim budget statement. The government committed to funding the infrastructure needed for electric vehicle manufacture and charging. The e-vehicle ecosystem will be strengthened and expanded by our government through manufacturing and infrastructural assistance for charging. Payment security mechanisms would stimulate e-bus use for public transportation networks more widely,” Sitharaman stated. In order to ease the financial barriers to e-bus adoption, manufacturers are being encouraged to establish manufacturing centers in India through the payment security mechanism, a collaborative financial security system between the United States and India.
Sitharaman also highlighted a solarization program aimed at one crore houses as a way to meet the demand for electric vehicle charging. “One crore families will be able to receive up to 300 units of free electricity per month through rooftop solarization. It is anticipated that the following advantages will occur. Sitharaman stated, “A. Households can save up to fifteen to eighteen thousand rupees a year by using free solar electricity and selling the excess to distribution companies; b. Electric vehicle charging.”
The government’s campaign attempts to remove obstacles that electric vehicles confront, including as high upfront prices and a lack of adequate charging infrastructure.
Landscape of Charging Infrastructure
As of March 21, 2023, 6,586 public charging stations were operating in India, according to data from the Bureau of Energy Efficiency. The Indian government has stated that by 2030, 18,000 public electric vehicle charging stations will be required in each of the country’s top nine cities, all of which have populations above 4 million. Without fast charging alternatives, EVs have a problem with an average 8-hour charging time, according to an Outlook Money item released in 2022. When you combine this with a lack of charging stations, your lengthy travels may have suffered.
However, recent developments in fast charger technology have greatly enhanced the charging environment. Certain electric cars may charge from 20% to 80% on these chargers in around 30 minutes, according to the Bureau of Energy Efficiency. Most electric vehicles on the market have a range of 150–200 kilometers between charges.
Pros & Cons Of Converting To EV
Even with these improvements, electric vehicles are still more expensive upfront than conventional cars. For example, the ex-showroom (Mumbai) price of the petrol basic variant of the Tata Nexon EV is now approximately Rs 8.10 lakh. The base diesel variant costs Rs 10.99 lakh ex-showroom, while the least expensive electric vehicle model costs Rs 14.47 lakh ex-showroom.
Therefore, the price difference from the petrol model is more than 6 lakh. Upon examining several Tata car models, it is clear that the price difference between the fuel and electric versions of each model is approximately Rs 4 lakh. However, upfront expenses can be decreased by government incentives such as a Rs 1.5 lakh tax deduction under Section 80 EEB on the interest amount on an EV loan.
Outlook Money was informed by experts that EVs are now less cost-effective overall over a ten-year period when compared to gasoline and diesel vehicles due to their hefty upfront expenses. But in terms of lower monthly operating expenses, EVs win hands down. For electric vehicles, there are still issues with battery life and replacement cycles.
Many experts told Outlook Money at the time that although manufacturers promise an 8-year battery life, in practice it is closer to 4 years. Many battery manufacturers currently provide warranties ranging from five to eight years.
Their easier mechanical design means far lower maintenance expenses. Compared to ICE automobiles, electric vehicles are also quieter and have a quicker acceleration in city traffic thanks to their power delivery. Tax credits and state government incentives can improve the offer even more. Experts estimate that within the next ten years, EVs will account for half of the market, and economies of scale should result in lower prices. This shift toward electric vehicle dominance on highways will happen more quickly thanks to the government’s expansion of the charging infrastructure.
